Moral Damages in the New Saudi Civil Transactions Law: The End of a Controversy

Nawel Ben Sassi

 

Abstract: In Saudi Arabia, controversies about awarding moral damages have been intense, specifically before the enactment of the new Civil Transactions Law (2023) (CTL). Based on the judge’s broad discretion when interpreting Shariah principles, decisions given in moral damage claims were inconsistent, which made it difficult to reach a clear-cut finding on this matter. Building a new efficient legal framework, the new CTL explicitly provides that moral damages may be awarded. This note analyses the changes introduced in CTL, explores the rationale behind the approaches adopted, and the expected positive impact on Saudi’s legal, economic, and social environment. The new provisions are compared to regional laws and Shariah principles, demonstrating the conformity of the new law to Shariah while harmonising with international practices. Also, the originality of the equilibrium established by the new legislation is highlighted. Lastly, some recommendations for further research and investigations are proposed.